1. Corporate Income Tax (CIT) Reduction: 

Companies operating in the processing and manufacturing industry often enjoy a lower corporate income tax (CIT) rate compared to other sectors. Additionally, new or expanding companies in this sector may be exempt from or enjoy reduced CIT for a specified period, depending on the location and scale of the project.

The tax exemption and reduction incentives include three schemes:

Exemption for 4 years, and a 50% reduction in payable tax for the following 9 years.

Exemption for 4 years, and a 50% reduction in payable tax for the following 5 years.

Exemption for 2 years, and a 50% reduction in payable tax for the following 4 years.

2. Export Tax Exemption: 

Companies in the processing and manufacturing industry are often exempt from export tax (VAT) on exported products. This improves price competitiveness in international markets and boosts Vietnam’s exports.

3. Personal Income Tax (PIT) Exemption or Reduction for Workers

If a company invests in areas with difficult socio-economic conditions, it may receive exemptions or reductions in personal income tax (PIT) for employees working there. This attracts talent and creates jobs for local communities.

4. Tax Incentives for Research and Development (R&D): 

R&D activities in the processing and manufacturing sector can benefit from special tax incentives, including exemptions or reductions in corporate income tax and import tax reductions for research equipment.

5. Special Tax Incentives for High Technology

Companies operating in high technology sectors often receive special tax incentives, including exemptions or reductions in CIT and VAT.

These tax incentive policies not only help the processing and manufacturing industry thrive but also attract foreign investment and promote technological innovation. However, to fully utilize these incentives, businesses must comply with legal regulations and timely, accurately report their taxes.

If you have any further questions or inquiries, please contact TPM via the website: tpm.com.vn or hotline 090 298 1080 for the quickest support.